Simulations Plus Inc (SLP)

Inventory turnover

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Cost of revenue	US$ in thousands	57,478	11,630	10,822	10,600	10,649
Inventory	US$ in thousands	2,197	804	1,391	1,012	970
Inventory turnover		26.16	14.47	7.78	10.47	10.98

August 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $57,478K ÷ $2,197K
= 26.16

Simulations Plus Inc's inventory turnover has shown a consistent upward trend over the past five years. The ratio increased from 10.98 in 2020 to 26.16 in 2024, indicating that the company is managing its inventory more efficiently. A higher inventory turnover suggests that the company is selling its inventory more quickly, which can lead to lower carrying costs and better cash flow management. This improvement could be a result of better inventory management practices, more accurate demand forecasting, or streamlined supply chain processes. Overall, the increasing trend in inventory turnover for Simulations Plus Inc is a positive indicator of operational efficiency and effective inventory management.